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2016 Annual Report • Finance Department • St. Anthony Village, Minnesota <br /> <br /> <br /> <br />11 <br /> <br />2 017 TAX LEVY EST ABLISHED IN 2 016 <br />In preparing the 2017 budget, Staff continued its mission to maintain the existing level of City <br />services and programs with the use of financially conservative budgeting. T he 2017 levy <br />increased by $399,973 over last year’s levy amount. This increase includes $263,440 of capital project <br />related funding prior to debt levy relief. Overall, this represents a 6.61% increase over 2016. <br />The City’s General Fund provides the support for City services. The parameters for preparing <br />the General Fund Budget and Levy include: <br /> City revenues budgeted using current run rates for sources that are subject to trends and <br />conservative baseline estimates for re-occurring aids and charges for services <br /> Liquor transfer set to match current operating results <br /> Expenses budgeted at amounts that will maintain present level of City services <br />The 2017 General Fund Levy increased by 5.56% with the relevant cost drivers detailed below: <br /> Personnel costs - 72% of General Fund expenditures, overall costs up 2.22% <br /> Union contract increases 3% <br /> Union longevity step increases <br /> Contracted services - 8% of expenditures, overall costs up $108,369 <br /> Property and liability insurance costs - 4% of expenditures, rates up 4.94% <br /> Pass through costs - 4% of expenditures, costs down $44,114 <br /> Remaining budget line items combined - 12% of expenditures, net costs down $20,136 <br /> Revenue reductions substantially due to lower fund transfers, pass- through <br />reimbursements, and tax increment revenues combined for $44,780 <br />The City again employed property tax relief for 2016 with the continuation of the City’s is the <br />“Peak to Plateau” initiative started in 2014. This program is designed to mitigate the levy impact <br />of the annual street reconstruction program which is expected to continue into the next decade. <br />The scheduled debt levy reduction for 2017 of $371,141 was an increase over 2016 allowance of <br />$301,921 provided $69,220 of additional levy relief on the overall levy requirement. <br />The impact of Property Tax relief reduced the Overall Levy increase required for 2017 and <br />reduced the overall from 12.74% to 6.61%, as demonstrated in the graph below. <br /> <br />Impact of Levy Relief <br />12.74% <br />Without any Debt levy relief <br />7.75% <br />With increase in debt levy relief <br />6.61% <br />Overall Levy increase